TITLE 7. BANKING AND SECURITIES

PART 6. CREDIT UNION DEPARTMENT

CHAPTER 97. CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS

SUBCHAPTER A. GENERAL PROVISIONS

7 TAC §97.104

The Credit Union Commission (Commission) adopts the repeal of Texas Administrative Code Title 7, §97.104, Petitions for Adoption or Amendment of Rules without changes to the proposal as published in the March 24, 2017, issue of the Texas Register (42 TexReg 1312).

In general, the purpose of the repeal of the rule is to implement changes resulting from the commission's review of Chapter 97 under Texas Government Code §2001.039. The rule is being replaced by §97.500, which is being adopted as published elsewhere in this issue of the Texas Register.

The department received one comment supporting the proposed repeal.

The repeal is adopted under §15.402 of the Texas Finance Code, which authorizes the Commission to adopt reasonable rules for administering Title 2, Chapter 15 and Title 3, Subchapter D of the Finance Code.

The specific sections affected by the adopted repeal are Texas Finance Code, §15.402, and Texas Government Code §2001.021.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on July 14, 2017.

TRD-201702686

Harold E. Feeney

Commissioner

Credit Union Department

Effective date: August 3, 2017

Proposal publication date: March 24, 2017

For further information, please call: (512) 837-9236


7 TAC §97.105

The Credit Union Commission (the Commission) adopts amendments to §97.105, concerning frequency of examination, without changes to the proposal as published in the March 24, 2017, issue of the Texas Register (42 TexReg 1313). The amended rule will not be republished.

In general, the purpose of the adoption of the amendments is to implement changes resulting from the commission's review of Chapter 97 under Texas Government Code §2001.039. The amendments clarify that the annual examination requirement means credit unions must be examined at least once during each twelve-month period. The proposed amendments also provide specific authority for the Department to extend the annual examination intervals to 18 months without prior written approval of the Commission.

The department received one comment in support of the proposed amendments.

The amendments are adopted under Texas Finance Code, §15.402, which authorizes the Commission to adopt reasonable rules for administering Title 2, Chapter 15 and Title 3, Subchapter D of the Texas Finance Code and under Texas Finance Code §126.051, concerning examinations.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on July 14, 2017.

TRD-201702687

Harold E. Feeney

Commissioner

Credit Union Department

Effective date: August 3, 2017

Proposal publication date: March 24, 2017

For further information, please call: (512) 837-9236


SUBCHAPTER F. RULEMAKING

7 TAC §97.500, §97.501

The Credit Union Commission (Commission) adopts new Subchapter F of 7 TAC, Chapter 97, §97.500 and §97.501, concerning rulemaking, without changes to the proposed text as published in the March 24, 2017, issue of the Texas Register (42 TexReg 1313). The new subchapter will not be republished.

In general, the purpose of the adoption of the new subchapter regarding rulemaking is to implement changes resulting from the commission's review of Chapter 97 under Texas Government Code §2001.039. The new subchapter contains two new rules which describe procedures for petitions to initiate rulemaking proceedings and hearings on proposed rules. The new rules are adopted to comply with the provisions of Government Code §2001.021 and §2001.029, which requires a state agency to prescribe the procedures for the submission, consideration, and disposition of a petition to initiate rulemaking and provide an opportunity for a public hearing before the agency adopts a substantive rule.

Section 97.500, Petitions to Initiate Rulemaking Proceedings, replaces §97.104, which the Commission repealed, as published elsewhere in this issue of the Texas Register. The new rule sets out the procedure for an interested person to petition the Department to initiate rulemaking proceedings.

Section 97.501, Hearings on Proposed Rules, implements the provisions of Government Code §2001.029, which requires a state agency to grant an opportunity for a public hearing before it adopts a substantive rule, under certain circumstances, if a public hearing is requested. The new rule authorizes the commissioner or his designee to hold these hearings and set appropriate hearing processes and procedures.

The department received one comment supporting the adoption of the proposed new rules.

The new rules are adopted under the provisions of the Texas Finance Code, §15.402, which authorizes the Commission to adopt reasonable rules for administering Title 2, Chapter 15 and Title 3, Subchapter D of the Texas Finance Code, and under Government Code §2001.021 and §2001.029, which direct the Commission to adopt rules for an interested person to petition the Department to initiate rulemaking proceedings and which provide an opportunity for a public hearing before the agency adopts a substantive rule.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on July 14, 2017.

TRD-201702690

Harold E. Feeney

Commissioner

Credit Union Department

Effective date: August 3, 2017

Proposal publication date: March 24, 2017

For further information, please call: (512) 837-9236